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Organisational development theory

Autor /appoidacy Dodano /28.08.2005

Introduction

Based on the information given in the Case Study material on Oticon, this essay will attempt to delineate:

How Oticon developed over the period in question, and what changes may be necessary in the future, drawing on key organisational development theory.

To what extent are the changes made by Kolind sustainable, what challenges does the new President face, and what will he need to bear in mind in terms of implementing more change in the organisation?

Oticon and Its Development

Oticon was founded in 1904 in Denmark. It is understandable that the new company grew up in the socio-economic context of its times: based on economic theory well-known in beginning of the twentieth century and it did take its common approach to the structures of business organization.

The industrial revolution was still having a profound effect on socioeconomic condition in European countries in the beginning of the twentieth century. Industrialisation and mass production was taking over the role of the old fashion manufacturing craftsman. Use of steam-powered machines led to a massive increase in the number of factories. It created the new class of industrial workers which were needed to work machines. European working class and middle class was made.
The spread of the Electric age and introduction of simultaneity from the instant spread of electricity transform the notion of process-based way of working of specialized segments of attention (splitting every process into a sequence) to the idea of the awareness of the whole, sense of function as a unity.
Rapid development of industry and changes happening in society provided an intellectual framework which welcomed scientific knowledge.
Common threads were appearing in the productive industries ? Marxism-Leninism and Communism concentrated on ?commodification? of man while Ford revolutionized automobile manufacturing process by employing interchangeable parts on assembly lines-heralding the beginning of industrial mass production were looking towards technological development and growth of work efficiency.
Emerging scientific and technological development created new ideas and schools of organisational development.

Scientific management

The first theoretician who conducted scientific research of organisational and management development was F.W. Taylor who tried to find ?the best way? of working. He wanted to cut on laziness of workers, he believed what he called ?systematic soldiering?; workers always do minimum and often only pretend to work. He introduced job analysis in a scientific way so every one knew how much work should be done in one day. This also enabled management to measure productivity more accurately.
He observed methods used by workers in the factory and used task analysis to achieve maximum of effectiveness.

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